Pinnacle Midstream has started the engineering and construction on the Sierra Grande gas processing facility in the Culberson County, Texas, US.
Expected to begin operations in the fourth quarter of this year, the 60MMcfd cryogenic gas processing plant is being developed around nine miles West of Orla in Texas.
The new cryogenic gas processing plant is said to provide full cryogenic recoveries with ethane rejection capability.
Once the plant becomes operational, the company will also expand the facility based on the demand for gas processing in Culberson County and Reeves County.
Besides, the company will operate natural gas gathering and crude gathering systems and crude truck transloading terminal near to the Sierra Grande gas processing plant.
Pinnacle Midstream’s Greg Sargent said: "The installation of the Sierra Grande Processing Plant is just one more step in Pinnacle's plan to be a full-service provider of midstream services in the Delaware Basin.
“We believe that Pinnacle can be a "One Stop Shop" for the Culberson and Reeves County Producer.
“This will allow Pinnacle to lay all necessary pipelines to the individual well in order for the producer to begin production without the addition of any trucks to the area, thus improving on production run time and reducing the possibility of accidents or spills."
Pinnacle Midstream, which was established in partnership with BP Energy Partners, offers gas gathering and processing, crude gathering and transloading services, in addition to SWD gathering and disposal services.